Selective licensing and additional licensing — What landlords need to know

Beyond mandatory HMO licensing, England local authorities have two additional licensing powers: selective licensing (requiring all private landlords in an area to be licensed) and additional HMO licensing (extending HMO licensing to properties below the mandatory 5-person threshold). Landlords must check whether their property falls within a designated scheme. Reviewed March 2026.

What the rule is

The Housing Act 2004 gives local authorities the power to designate selective licensing and additional HMO licensing schemes in their area. These designations are approved by the Secretary of State (for larger schemes) or by the local authority itself (for smaller schemes). Schemes must be renewed and can cover the whole borough or specific wards.

Selective licensing

What it is: A scheme requiring all private landlords renting properties in a designated area to obtain a licence from the local authority, regardless of property type or occupancy level.

Why councils use it: To address problems such as antisocial behaviour, poor property conditions, high crime rates, or significant deprivation in the area.

Who it affects: Any private landlord letting a residential property (other than to a single household) in the designated area.

How to check: Search your local council’s website for “selective licensing”. The scheme designation is published along with maps of affected areas.

Additional HMO licensing

What it is: A scheme that extends HMO licensing to smaller HMOs that don’t meet the mandatory threshold (i.e. below 5 occupiers from 2+ households).

Why councils use it: To improve standards in smaller shared houses.

Who it affects: Landlords with HMOs of 3 or 4 occupiers (or in some cases, 3+ storeys) in the designated area.

When it applies

• Selective licensing: if your property is within a designated selective licensing zone
• Additional HMO licensing: if your property is an HMO that falls outside mandatory licensing but within an additional licensing designation
• Both can apply simultaneously — a property could need a selective licence AND an HMO licence

What landlords must do

• Check whether your property falls within any designated scheme (check council website regularly — designations change)
• Apply for any required licence before letting
• Meet the conditions of the licence (which typically mirror or exceed mandatory HMO standards)
• Pay the licence fee (varies by council and scheme)
• Display the licence in the property if the conditions require it
• Notify the council of any significant changes (change in occupancy, management)

What evidence to keep

• Licence certificate(s) for each designated scheme
• Records of compliance with licence conditions
• Evidence of application and correspondence with the local authority

Common mistakes

• Assuming no scheme applies because the property is small — selective licensing applies to all private lets in the area, not just HMOs
• Not monitoring for new designations — schemes are introduced and renewed regularly; check your council website annually
• Using a licence for the wrong property — licences are property-specific and cannot be transferred
• Missing the renewal deadline — track expiry dates and apply for renewal before the current licence expires

FAQ

How do I find out if there’s a scheme in my area? Search your local council’s website for “selective licensing” or “HMO licensing”. The Residential Landlords Association and NRLA also publish lists of known schemes.

Do I need a licence for each property separately? Yes — each property requiring a licence needs its own application.

What happens if I buy a property in a designated area? You must apply for a licence before you start letting, or continue letting under the previous licence until it expires then reapply.

Can I appeal if my licence application is refused? Yes — you can appeal to the First-tier Tribunal (Property Chamber). Seek legal advice before appealing.